I have a client that would like to include wages of his step-son-in-law saying that the IRS is silent on step-relations and isn’t specifically called out in the 2021-49. I’m reluctant b/c the intent of the guidance is clear in regards to family inclusion rules (267(c)) and the IRS isn’t going to address every related variations. Do you know of any other rules, cases, precedent regarding step-relations? This is not necessarily rep-work specific.
If you’re interested further, my company Accountant’s Accelerator has a course on this in detail about how another tax attorney takes the pro-taxpayer position. He cites his reasoning as well as case law and statutes to build a decent case against. About 80% of the class ends up agreeing with him after they hear his view.
This is a recording only purchase, we are going to repeat it live for CPE/CE on Sep 17 (I don’t have the registration setup yet) – if you are interested, email me at email@example.com and I will get you the page when it’s live. https://accountantsaccelerator.com/cpa-trendlines-webinars-erc-detonates-bomb-notice-2021-49/
I would be interested in learning further. Does he argue that any S Corp owners wage qualify?
What’s the worst case consequences of taking such a position against IRS guidelines? in case I’m being reviewed and I don’t have the intent to challenge them in court. Is it criminal in their view or just repayment with penalties?